Facebook sponsored ads cost an auction where potential advertisers bid to have their ads shown. The highest bid wins the placement, and the price of an ad can vary depending on what other advertisers are bidding for the same ad space.

Ad costs tend to be higher in Q4 due to competition, but they can also vary by country and season. Costs can also be impacted by whether you are running a brand awareness campaign or a conversion goal. In general, higher-value goals like product catalog sales or in-store visits tend to have a lower CPC than link clicks or website visit retargeting campaigns.

Calculating Expenses: Facebook Sponsored Ads Cost Analysis

Another big factor in ad cost is your campaign budget. When you set a daily or lifetime budget, Facebook will automatically optimize your ads for the goal that best fits within your budget. Choosing a larger daily budget can help Facebook better understand your audience and encourage high engagement, which can lead to lower daily costs over time.

If you choose the manual bidding strategy in Facebook Ads, you can set a maximum bid for each auction. This can be a good option for advertisers with enough experience to manage ad budgets effectively and want to control the exact number of clicks or results they want. However, it can be tricky to balance a maximum bid with performance and profitability goals. In addition, you will need to actively maintain and manage the manual bidding strategy with regular optimizations.